Bowman Corporation's sales were $300,000,and the balance in its Accounts Receivable account increased by $8,000 during the year.Bowman collected $308,000 in cash from its customers.

Question

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Bowman Corporation actually collected $292,000 in cash from its customers. The increase in Accounts Receivable indicates that not all sales were collected in cash; therefore, to find the cash collected, you subtract the increase in Accounts Receivable from sales ($300,000 - $8,000 = $292,000).

Bowman Corporation's Sales Were $300,000,and the Balance in Its Accounts